By Cristal Cody
Tupelo, Miss., March 25 – O'Reilly Automotive, Inc. sold $500 million of 4.2% 10-year senior notes (Baa1/BBB) on Wednesday at a spread of Treasuries plus 340 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 375 bps area.
The notes priced at 99.925 to yield 4.205%.
Bookrunners were J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.
The proceeds are intended to be used to repay outstanding borrowings under the company’s credit facility, with remaining proceeds for general corporate purposes, which may include ordinary course working capital, repurchases of common stock, and investments in other business opportunities, including acquisitions.
O'Reilly Automotive is a Springfield, Mo.-based retailer of automotive aftermarket products.
Issuer: | O'Reilly Automotive, Inc.
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Amount: | $500 million
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Description: | Senior notes
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Maturity: | April 1, 2030
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Bookrunners: | J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
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Senior co-managers: | PNC Capital Markets LLC and TD Securities (USA) LLC.
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Co-managers: | BNP Paribas Securities Corp., Capital One Securities, Inc., Citizens Capital Markets, Inc., Huntington Investment Co., Mizuho Securities USA LLC, MUFG and Regions Securities LLC
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Coupon: | 4.2%
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Price: | 99.959
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Yield: | 4.205%
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Spread: | Treasuries plus 340 bps
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Call features: | Make-whole call at greater of par or Treasuries plus 50 bps before Jan. 1, 2030; thereafter at par
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Trade date: | March 25
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Settlement date: | March 27
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Ratings: | Moody’s: Baa1
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| S&P: BBB
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Distribution: | SEC registered
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Price guidance: | Treasuries plus 375 bps area
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